Irish services exports rose 6.4% in H1 2010 according to the Irish Exporters Association (IEA) while merchandise exports fell 3.8% compared with the same period in 2009.

In its 2010 Half Year Review, the IEA said the rapid return to growth in global markets was seen in the 'stellar performance' of Irish services exports which continued their very strong growth pattern and rose by €2.2bn to €34.6bn in the first 6 months of the year. Irish merchandise exports in the second quarter of 2010 were up 5% or just over €1bn compared to the first quarter of the year. This is the first quarterly growth in merchandise exports recorded since the beginning of 2009, and according to the IEA, indicates we may now have reached the turning point in the decline in Irish merchandise exports , brought on by the global financial crises. However, cumulatively in the period January to June the value of merchandise exports were down by 3.8% or €1.7bn on the same period last year.

John Whelan, Chief Executive of the IEA said that the Irish agri-food sector returned to growth during the second quarter of this year helped by a global increase in commodities prices. The half year figures are up by just under 3% over the same period in 2009 but are still 10% below the 2008 comparable half year figures. Exports from the beverages sector are currently, running just 1% below the first half figures of 2008. Exchange rate developments have also been assisting Irish exports to both the UK and the US, with a euro decline of 8% against Sterling and 16.5% against the Dollar in the first 6 months of the year.

Services exports are likely to exceed merchandise exports for the first time ever next year. However, Whelan said he was very concerned that from a national strategy point of view only 3.5% of Ireland’s services exports come from Enterprise Ireland clients , who are the main target of State assistance .

The IEA have proposed to Minister for Enterprise Batt O'Keeffe , a means of offering a wider incentive to all services companies with the potential to enter international markets through a ‘’Export Outreach Voucher Scheme’’.

“The Irish Exporters Association believes that the combined Irish exports of goods and services will show positive growth by some 3.4% for the full year 2010,” said Whelan. He added that should the growth in world trade continue for 2011 and providing that Ireland can maintain its momentum in restoring lost competitiveness that the resultant increase in exports should lead to the creation of 24,000 additional jobs during 2011.